Stepped Taxes
Warning:
This is a difficult example. You should take the time to understand it even if you don't have stepped taxes because it illustrates the power of the various rate algorithms.
The following table illustrates the rate components necessary to levy a simple rate that contains the following charges:
• $0.10 per kWh.
• Service charge of $6.00
• Taxes are stepped:
• 6.383% for the anything up to $10
• 9.89% for everything above $10
Note that the dollar amount should be prorated if the bill is prorated.
Seq # | Description | RC Type | Value Type | Value | UOM/TOU/SQI | Cross Reference | Calc Only | Result Type |
10 | Energy Charge | Service Quantity | Unit Rate | 0.10 | KWH | | N | |
20 | Customer Charge | Flat | Charge | 6.00 | | | N | |
30 | Total Taxable Revenue | Summary | | | | 10, 20 | Y | Charge |
40 | Taxable Rev for 1st tax tier | Maximum | Charge | 10.00 | | 30 | Y | Charge |
50 | Taxable Rev for 1st tax tier | Summary | | | | 30, 40 | Y | Charge |
60 | Taxable Rev for 2nd tax tier | Apply To | Percent | -100.00 | | 50 | Y | Charge |
70 | Taxable Rev for 2nd tax tier | Summary | | | | 30, 60 | Y | Charge |
80 | Tax for 1st tier | Apply to | Percent | 6.383 | | 50 | N | |
90 | Tax for 2nd tier | Apply to | Percent | 9.89 | | 70 | N | |
Notice that sequences 30, 40, 50, and 60 are calculation-only rate components that are used to calculate the amount of revenue applicable for each tax rate. We'll let you work the math.
Parent topic